Filing Your Taxes? Get A Head Start

December 30, 2009 by blackgirlgrown
Filed under money, taxes

blackgirlgrown is proud to feature Shannon King Nash, author of the award-winning book entitled, “For the Love of Money: The 411 to Taking Control of Your Taxes and Building Your Net Worth.”

The past does repeat itself and looking at old tax returns can help you come up with what your situation will look like for 2009. Create your “pro-forma” tax return (or ask the tax preparer to do so). This can help you see if you will owe money, or if you are due a refund. Here’s how:

Get your 2008 Tax Return – Use this tax return as your guide for the type of information you need to gather to calculate your 2009 income and deductions.
Get Your Most Recent Pay Stubs – Gather your most current pay stubs to see how much you will make for the year, and how much you have paid in federal and state taxes.
Add up all of Your Business or Real Estate Income and Losses - Include any income or losses you anticipate from your business or real estate holdings.
Total Your Expenses – Make sure to track all medical expenses you paid, including (but not limited to): Insurance premiums, co-pays, prescription medicine, medical devices, eye exams, glasses/contact lenses, mileage, office visits, and hospital/clinic expenses. Don’t forget interest expenses related to your mortgage, and property taxes for your home and car.
Don’t Forget Charitable Contributions – Gather your tithes or charitable contribution statements. Always keep Salvation Army and/or Goodwill contribution receipts. If possible, take pictures of items donated; especially if they are high retail and in superior condition. Also, keep in mind charitable contributions you may be able to take for volunteering with a charity (i.e., mileage, expenses you paid on behalf of the charity).

Enter this information into your favorite tax preparation software, or get your tax preparer to do this for you. You can also try one of the tax liability calculators on the internet. The result will allow you a head start on filing for the tax year.

Shannon King Nash is an Attorney, CPA, Author and Entrepreneur. She is the author of the award-winning book entitled, “For the Love of Money: The 411 to Taking Control of Your Taxes and Building Your Net Worth.” She uses song lyrics and entertaining stories ripped from the headlines to teach readers how to manage their finances and taxes. She’s been featured as a tax, finance and legal expert in Global Finance Magazine, Jet Magazine, Essence Magazine, Ebony Magazine, ABC News Online, Upscale Magazine, The Chronicle of Philanthropy, Bankrate.com, L.A.Parent Magazine and The Washington Times. Currently she can be seen on the cover of the April 2009 issue of Black Enterprise Magazine. In addition, she served as the finance expert on recent episodes of BET’s “The Center” and Style Network’s “Modern Girls Guide.” Shannon is a graduate of the University of Virginia School of Law. Follow Shannon’s articles of Ehow and the LA Nonprofit Examiner.